Chapter 7 ( Assessing and Securing your Credit) Flashcards
funds provided by a creditor to a borrower that will be repaid by the borrower in the future with interest
credit
What are three types of credit?
- Non-installment credit
- installment credit
- revolving open-end credit
credit provided for a short period, such as department store credit
non-installment credit
credit provided for specific purchase, with interest charged on the amount borrowed
installment credit
credit provided up to a specified maximum amount based on income and credit history; interest is charged each month on the remaining balance
revolving open-end credit
helps protect debtors form unethical creditors
equal credit opportunity act
- regulates online checking accounts, credit cards, and student loans
- to ensure accurate consumer information and prevent deceptive practices
- may also regulate credit rating bureaus
financial reform act of 2010
- often begins with timely payment of utility bills
- build by paying bills in a timely manner
credit history
can cover payments under adversed conditions
credit insurance
proved credit reports documenting your credit payment history
credit bureaus
reports provided by credit bureaus to document a person’s credit payment history
credit report
What are the primary bureaus?
- Equifax
- Experian
- TransUnion
score affected by many factors
- credit payment history (35% of score)
- credit utilization (30% of score)
- credit history (15% os score)
- new credit (10% of score)
- different types of credit (10% of score)
credit score range
350 to 850 with 600 being considered a good score
What is the recommended amount of times you can request your credit report?
at least twice a year
theft that occurs when an individual, without permission, uses your identifying information for his or her personal gain
identity theft
tactic used when an identity thief stands close to you in a public place and rads the number of your credit card as you conduct business
shoulder surfing
tactic used when an identity thief goes though your trash for discarded items that reveal personal information that cane be used for fraudulent purposes
dumpster diving
tactic used when store employee steals your credit card number by copying the information contained in the magnetic strip on the card
skimming
tactic used when an identity thief poses as an employee of a company with which you conduct business, to solicit your personal information
pretexting
tactic used when protecting happen online
phishing
similar to phishing, but targeted to larger audiences; tactic that directs users to bogus web sites to collect their personal information
pharming
- remove items containing SSN from purse/wallet
- document your accounts
- buy a shredder and use it
- do not have SSN printed on your checks
- remove your name and address from phone directories
- install a locked mailbox or rent a P.O. box
- shop online only on secured sites
- be suspicious of phone callers seeking personal information
- mail all bills with account information in a U.S. Postal service depository box
- scrutinize bank and credit card statements
- be careful using hand held or cell phones when ordering merchandise
- be aware of delivery schedules
- never have personal checks delivered to your home
- protect home computer from hackers
- have mail held at the post office when on vacation
Shielding personal information at home
available as part of homeowner or renter policies or as a stand alone policy
identity theft insurance
- take immediate action
- maintain a record of all phone calls and correspondence
- contact the police
- contact federal trade commission
- contact credit reporting companies
- contact creditors and others who may be impacted
response to identity theft
